FirstFT: Turkey demands Sweden ‘cut ties’ with Kurdish militia to join Nato

Sweden must cut ties with a Syrian Kurdish militia or Turkey will block its application to Nato, Ankara’s ambassador to Stockholm has warned amid a deepening crisis over the Scandinavian country’s bid to join the transatlantic defence alliance.

Emre Yunt told the Financial Times that severing links with the People’s Protection Units (YPG) was “the most important” of Turkey’s demands after President Recep Tayyip Erdoğan stunned Nato allies by saying he could not accept the membership of Sweden and Finland due to their support for groups that Turkey views as terrorists.

Erdoğan, who blocked Nato’s initial decision yesterday to process the Nordic countries’ requests to join the military alliance, lambasted them for refusing to extradite 30 people accused of having links to terror groups.

But Yunt said that Ankara wanted Stockholm, which is seen by Turkish officials as a bigger problem than Helsinki, to go further. “They have to cut their ties with YPG,” he said. “That is the most important.”

The YPG is an armed Kurdish militia that spearheaded the campaign against Isis in Syria, and has received weapons and training from the US-led anti-Isis coalition, which was supported by troops from Sweden.

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Five more stories in the news

1. The Russians supporting fleeing Ukrainians A network of Russian antiwar activists and volunteers — operating largely through word of mouth and on the Telegram messaging app — is helping thousands of Ukrainian refugees flee Russia, crossing land borders to neighbouring countries such as the Baltic states. Kyiv has accused Moscow of forcibly deporting Ukrainians to Russia.

2. Why Britain has the highest inflation in the G7 As finance ministers and central bank governors met in Bonn yesterday, Chancellor Rishi Sunak and Bank of England governor Andrew Bailey had the dubious honour of presiding over the worst inflation among advanced economies, as data showed UK inflation surged to 9 per cent in April.

3. UK’s FCA to gain powers to protect access to cash The financial regulator will gain new powers to ensure banks and building societies continue to provide access to cash. Legislation to be announced today will enable the Financial Conduct Authority to intervene to ensure communities are not cut off from banking services as branches disappear.

4. Wall Street suffers worst day since early months of pandemic US stocks endured sharp falls yesterday as weak results from consumer bellwethers stoked concerns about inflation and choked supply chains. The S&P 500 dropped 4 per cent, its biggest loss since June 2020, with 98 per cent of stocks in the index declining, while the tech-dominated Nasdaq Composite shed 4.7 per cent.

5. Shuttle company Blade swoops on luxe Riviera routes Helicopter shuttle company Blade Air Mobility has struck deals worth €48mn including with Monaco’s royal family and Ferrari shareholder John Elkann to fly between the French Riviera, Monte Carlo and Courchevel. It plans to announce the deals today ahead of the Monaco Grand Prix, for which it is advertising $220-per-seat flights from Nice.

The day ahead

Nato meets Defence chiefs will gather in Brussels today, as US president Joe Biden hosts the leaders of Finland and Sweden at the White House to discuss their Nato applications.

ECB minutes Policymakers will release minutes from the European Central Bank’s last meeting as central banks around the world seek an interest rate sweet spot in the inflation fight.

Corporate earnings Companies reporting results include easyJet, Generali, Investec, National Grid, Qinetiq, and Royal Mail.

Events The 67th Ivor Novello Awards for songwriting and composing will be held at Grosvenor House in London.

What else we’re reading

Debt suffocates Africa’s climate change response BlackRock’s Larry Fink has signalled support for climate-aligned investing. But behind his careful positioning, writes Vanessa Nakate, is the story of BlackRock and Zambia, and how debt has prevented lower-income countries from defending themselves against climate change.

Hollywood braces itself for austerity after streaming splurge As once-raging subscriber growth reverses and its stock price tumbles, Netflix will be “pulling back” on spending growth over the next two years, said Spencer Neumann, its chief financial officer. A new age of austerity may be emerging in the streaming wars.

US companies boost capital spending on supply vulnerabilities Companies are accelerating capital spending despite slowing growth as supply chain disruptions and “deglobalisation” override worries about a looming recession, as recent quarterly reports revealed pressures on profitability just as the economic recovery begins to lose steam.

The battle to lead the supercomputer race The US has made a breakthrough in computer processing power that will have a big impact on climate change research and nuclear weapons testing. But the success is likely to be muted — China passed the milestone first and leads the field in supercomputing.

How Covid-19 affects the human brain The cognitive impairment caused by severe Covid-19 is comparable to losing 10 IQ points, researchers have suggested, as scientists examine the neurological effects of the disease — and whether symptoms will prove temporary, or if the heaviest health burdens still lie in the future.

Travel

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